Question 1

In facility location decision making matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn.

Accepted Answer

While matching the educational and skill levels of the labor pool to a company's needs is important, the labor pool's willingness and ability to learn can be equally or more important, as it allows for adaptability and growth in a rapidly changing business environment.

Question 2

The objective of facility location analysis is to select the site with the lowest total cost.

Accepted Answer

Facility location analysis aims to find the optimal location with the lowest total cost, considering factors such as transportation, labor, taxes, and other relevant costs associated with the location. Therefore, the statement is true.

Question 3

Because the world is becoming more highly interconnected,the proximity of an important supplier's plants is not crucial in supporting lean production methods.

Accepted Answer

The statement is false. While globalization has increased the reach of suppliers, proximity to important suppliers can still be crucial in supporting lean production methods, particularly in industries where time-sensitive materials are critical for production. A longer supply chain can increase lead time, transportation costs, and the risk of disruptions. In some cases, it may be necessary to have suppliers located closer to the manufacturing facility to ensure timely delivery, reduce waste, and improve overall efficiency.

Question 4

Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

Accepted Answer

The answer of Governmental barriers to enter and locate in...

Question 5

favorable business climate in facility location decision making might include government legislation of tax abatements.

Accepted Answer

Government legislation of tax abatements can make the business climate more favorable in terms of cost savings and incentives for facility location decision making.

Question 6

In facility location decision making the educational and skill levels of the labor pool must match the company's needs.

Accepted Answer

The educational and skill levels of the labor pool are an important factor to consider in facility location decisions. The company needs to ensure that there is a suitable workforce available to meet their specific needs and requirements. Matching the labor pool with the company's needs will enhance productivity, reduce training costs, and increase the chances of long-term success.

Question 7

free trade zone is typically a closed facility into which foreign goods can be brought without being subject to the usual customs requirements.

Accepted Answer

A free trade zone is a specially designated area where goods can be imported and exported with minimal interference from customs authorities. This allows for easier trade between countries and can provide economic benefits for businesses operating within the zone.

Question 8

Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

Accepted Answer

Facility location analysis takes into account the importance of being close to customers to ensure timely deliveries and remain competitive.

Question 9

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

Accepted Answer

Facility location analysis takes into account the availability and suitability of the labor pool in the surrounding area, including cost and skill level considerations.

Question 10

free trade zone operates under different rules and laws than a foreign trade zone.

Accepted Answer

A free trade zone and a foreign trade zone are essentially the same concept, where goods can be imported, stored, and exported with reduced customs regulations and tariffs. The terms are often used interchangeably.

Question 11

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

Accepted Answer

Facility location analysis does consider the presence of other companies in the same industry as part of the competitive imperative.

Question 12

An example of a positive business climate that might influence a facility location decision is increasing governmental costs and increasing property taxes.

Accepted Answer

Increasing governmental costs and property taxes are not positive factors for a business climate. A positive business climate would include factors such as low tax rates, supportive government policies, access to a skilled workforce, and a strong infrastructure.

Question 13

Quality of life in a host community is not a major factor in making the facility location decision.

Accepted Answer

Quality of life in a host community can be an important factor in making the facility location decision, as it can affect the attractiveness of the location to potential employees and customers, as well as the overall reputation and sustainability of the facility.

Question 14

Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.

Accepted Answer

Facility location analysis involves considering all factors, including labor availability and skills, to determine the best location for a facility. Locating near a high-skilled labor pool can give a company a competitive advantage.

Question 15

favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce.

Accepted Answer

Providing basic skill training can increase the availability of qualified workers, which can be seen as a positive factor in the decision-making process for facility location. It can also show that the local government is supportive of economic development and willing to invest in the workforce.

Question 16

Facility location analysis considers the competitive imperative of lowest total cost.

Accepted Answer

Facility location analysis aims to find the optimal location for a business facility that would minimize the total costs associated with the operation of the facility. This is done to gain a competitive advantage and increase profitability. Therefore, the competitive imperative of lowest total cost is a primary consideration in facility location analysis.

Question 17

In facility location decision making the factor-rating system is one of the least used general location techniques.

Accepted Answer

The factor-rating system is one of the most commonly used general location techniques in facility location decision making. It involves assigning weights to various location factors such as labor costs, transportation costs, and proximity to markets, and then evaluating potential locations based on how well they score on each factor.

Question 18

Issues of product mix and capacity are strongly interconnected to the facility location decision.

Accepted Answer

The product mix and capacity of a facility determine its size and production capabilities, which in turn affects the suitability of a particular location. Some locations may have limitations on space, utilities, or transportation that can impact the ability to produce certain products or provide sufficient capacity for demand. Therefore, consideration of product mix and capacity is essential in determining the best facility location for a company.

Question 19

The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility.

Accepted Answer

This statement is true as companies often look for areas with modern and reliable infrastructure to ensure smooth operations and productivity. The local government's investment in infrastructure can also indicate a commitment to economic development, making the area more attractive to businesses.

Question 20

favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.

Accepted Answer

A favorable business climate that includes local government intervention can indeed facilitate businesses locating in an area via subsidies, tax breaks, infrastructure development, and other incentives. These initiatives can reduce the costs and risks associated with setting up or expanding a business, making it more attractive for companies to invest in a particular location. However, some argue that such interventions may distort competition among firms and create inefficiencies in resource allocation, so the decision to offer subsidies should be carefully evaluated based on the potential benefits and costs to the local economy.

Quiz 14: Location, Logistics and Distribution